So, when the wool is detached from the lamb, it is an agricultural produce and you should measure it at fair value less costs to sell initially – which is essentially NRV. This is also in line with IAS 2, where
Section 2 Questions and answers 25 Section 3 Illustrations 49 Glossary 81 4 PricewaterhouseCoopers IAS 39 – Derecognition of financial assets in practice Section 1 Derecognition theory IAS 39 – Derecognition of financial assets in practice Section 1: Derecognition theory 6 PricewaterhouseCooper...
IAS2Inventories65-84 IAS8AccountingPolicies, ChangesinAccountingEstimatesandErrors 85-108 IAS10EventsAftertheBalanceSheetDate109-116 IAS15Information Reflecting the Effects of Changing Prices 117-120 IAS 16 Property, Plant and Equipment 121-160